DPL cancels Nogis contract

DPL Secretary Oscar M. Babauta, in an interview yesterday, said the controversial contract was cancelled two weeks ago based on the “strong” recommendation of the Office of Public Auditor which reminded the Attorney General’s Office of the law that prohibits persons convicted of violating federal and local laws from working for the government.

A former Workforce Investment Agency executive director, Nogis was convicted of theft involving federal funds.

Babauta said he has verbally instructed Nogis to return the $10,000  DPL initially paid him.

DPL, he added, is looking for a new firm interested in the job.

Nogis is the campaign manager of the ruling Covenant Party’s candidate for congressional delegate, former Rep. Joseph N. Camacho.

“I must admit that it was an honest mistake and whatever amount that FELNO absorbed from DPL will be returned,” Babauta said, referring to the contract.

He said although FELNO’s performance was in compliance with the contract, it had to be terminated.

Saying that there was a need to prepare the Northern Islands for the military’s buildup plans in the Marianas, Babauta explained that FELNO’s job was to identify potential agricultural and residential homestead areas in the Northern Islands and screen the potential applicants for  homesteads.

By the end of this year, DPL expected to unveil its plan for the Northern Islands homestead project.

But because of the contract’s cancelation, the project will be 60 to 90 days behind, Babauta said.

He did not mention where the cash-strapped CNMI government will get the millions of dollars that will be required by such a project in the commonwealth’s most remote islands.

Nogis has another sole-source contract with the  Department of Lands and Natural Resources which wants him to conduct “terrestrial/marine surveys” in the Northern Islands.

The cost of this contract is $40,500.

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